Gas Motor Fuel Market to be in Progress

17 december 2015

The Analytical Center held the Workshop of the Working Group on the use of natural gas as a motor fuel. The use of the gas motor fuel is one of the most promising directions of the gas industry development. The Government of the Russian Federation and the Ministry of Energy are working intensively with regions and companies within the Working Group to use this potential and are trying to find the best ways to develop this business.

According to Maksim Lobanov, the Deputy Head of the Oil Refining and Gas Processing Department of the Ministry of Energy of Russia, in 2016 the market has to turn to mass development. He noted that 40 regions included that in their programs and the largest gas companies - Gazprom, Rosneft and Novatek - created and funded subsidiary enterprises. At the same time, development of infrastructure is lagging behind all plans.

Speaking at the Working Group, Alexander Amiragyan, the Adviser to the Department for Fuel and Energy Sector of the Analytical Center, systematized obstacles to the wider use of the gas motor fuel in Russia. In addition to the lack of infrastructure these are: high investment risks of equipment manufacturers and operators of automatic compressor gas filler stations, the lack of economic incentives for private consumers in conditions of high costs of re-equipment of cars, as well as the lack of funds in municipal transport services for transport procurements.

Nevertheless, plans remain ambitious, as speakers - representatives of gas motor fuel and equipment manufactures - confirmed.

The Analytical Center plans to continue its work with the Russian Ministry of Energy in analyzing gas motor fuel market prospects and development of mechanisms of its work.